Forest Products Industry
Non-conventional advanced water treatment solutions are considered essential to coping with increased water scarcity. The IDA Water Security Handbook, released in January 2019, provides the latest market overview for the global desalination and water reuse markets.
In 2019, the seawater desalination market is set to experience its most dynamic year since the late 2000s, according to the new IDA Water Security Handbook, published by the International Desalination Association (IDA) and Global Water Intelligence (GWI) in January 2019.
In the past 3 years, the overall desalination market has remained steady; however, several factors are driving the surge in desalination projects. These include rising demand for clean water, decreasing capital and operational costs of desalination, and the need to replace older facilities with energy-efficient processes, among others. At the same time, water reuse has become an increasingly important part of water resources management around the world. The global contracted reuse capacity has almost doubled since 2010, with cumulative contracted capacity increasing from 59.7 million m3/d in 2009to 118 million m3/d in 2017.
According to the 31st desalination inventory, which covers July 2017–June 2018, the total global installed desalination capacity stands at 97.4 million cubic meters per day (m3/d) while the total global cumulative contracted capacity is 104.7 million m3/d. As of June 30, 2018, more than 20,000 desalination plants had been contracted around the world.
IDA Secretary General Shannon McCarthy relates this industry growth to global trends. “As climate change continues to impact our world, along with industrial and population growth, the demand for clean water increases. Desalination and water reuse: non-conventional, environmentally sound water supply solutions are in keeping with the circular water economy and offer solutions to water scarcity. The trends we are seeing point to a broad recognition that these advanced water treatment solutions are essential to the health and well-being of people and economies around the world, both now and in the future.”Desalination costs down
“The big breakthrough in the past year has been on the cost of desalination,” says GWI Publisher Christopher Gasson. “Recent project tenders in Saudi Arabia and Abu Dhabi have seen the price fall below $0.50/m3 for the first time. After a decade in which price drifted upwards as a result of high materials costs and higher energy costs, this is very good news. Indeed, we expect 2019 to be the best year ever in the desalination market. In terms of water reuse, prices for indirect potable standard water are in the $0.30-$0.40 range, but the market is still held back by public perceptions.”
Significant price reductions in desalinated water pro-diction costs are related to several factors not only specifically linked to technological progress, says Carlos Cosín, IDA officer and CEO of Almar Water Solutions. “From my perspective, the contractors’ experience after years of building large-scale projects in the region has led to a cost-efficient optimization of the construction process. New contractual and financial models have contributed to the creation of strong, solid consortiums, which have the knowledge to accommodate risk in a more efficient manner. Together with lower interest rates in the financial sector, these are all important factors that are helping to push tariffs down.”
Material and design changes have also contributed to price reductions, Cosín explains. Lower petroleum prices have reduced the cost of desalination plant components, many of which are manufactured from oil-derived materials, such as membranes and plastic pipes. Additionally, energy savings has been realized through advances in membranes that require less inlet pressure, energy-efficient recovery devices, and larger reverse osmosis trains with larger pumps and motors capable of higher efficiencies.
Construction activity gains momentum
The expected surge in desalination is largely a result of gathering momentum in construction plans in the Middle East, especially for the six Gulf Cooperation Council (GCC) nations: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. According to the 2018-2019 IDA Water Security Handbook, 1.9 million m3/d of seawater capacity was contracted in the first half of 2018, up 26 percent over the same period in 2017. Since that time, preferred bidders have emerged on projects totalling well over 1 million m3/d in additional new capacity in the region.
No single factor is catalysing the boom of desalination projects in GCC countries, says IDA President Miguel Angel Sanz, who is also the director of strategic development for treatment infrastructure at Suez International. Instead, he explains that several elements are driving the momentum in a region with limited natural water resources that are decreasing each year. These include high population growth, the need to update old desalination facilities, and the crude oil crisis.
Sanz also notes that the boom of renewable energies producing electricity at a cost as low as US$20 per megawatt hour (MWh) has finally put into the market a trend to reduce drastically the production cost of desalinated water, where the energy is half of the tariff. In the case of the UAE, another special catalyzer is the next commissioning of nuclear power reactors that will force the end of coupling conventional power plants to thermal desalination.
“All these factors have shifted the balance toward building new mega plants in the area, producing water more efficiently and drastically reducing the cost by economy of scale, ‘aligning the planets’ in a very short period and causing this desalination boom,” Sanz adds.
Global construction trends
Not all of the contracted large seawater plants are located in the Middle East. The largest seawater desalination award listed in the 31st desalination inventory is the 378,000-m3/d seawater reverse osmosis (SWRO) project in Rosarito, Mexico. This was followed by projects at Hamriyah (Sharjah, UAE, 272,760 m3/d), Shoaiba 3 expansion 2 IWP (Saudi Arabia, 250,000 m3/d) and Al Khobar (Saudi Arabia, 210,000 m3/d).
Globally, contracted capacity for brackish water desalination declined by 19 percent over the prior year, but in the United States (US), contracted brackish water desalination rose significantly, totalling 205,600 m3/d, the highest level since 2012 and a 26-percent increase over 2016, with a fairly even split between municipal and industrial plants.
Desalination of lower concentration feedwater, such as waste-water and low-concentration surface water, also increased, comprising almost 25 percent of total capacity in 2017 compared to approximately 15 percent in 2016. The majority of this capacity is made up of large wastewater treatment plants in China and India.
From a geographic perspective, contracted capacity in the Middle East – the largest market for desalination – fell from 2016 to 2017, but this decline was offset in 2018 by the awarding of several large projects in Saudi Arabia and Bahrain as well as expansion projects in both Dubai and Sharjah. Dubai Electricity and Water Authority (DEWA) awarded contracts for a 181,840-m3/d SWRO expansion at its Jebel Ali power and desalination complex as well as a 272,360-m3/d SWRO expansion of Federal Electricity and Water Authority’s (FEWA) Hamriyah desalination plant in Sharjah.
The Asia-Pacific desalination market grew in 2017, primarily due to the Chinese desalination market where contracted capacity reached its highest level since 2010. In the Americas, 2018 was the most active year for desalination since 2013. In sub-Saharan Africa, Kenya’s Mombasa County awarded two projects of 100,000 m3/d and 30,000 m3/d while three smaller projects were awarded in Cape Town to help avert its looming “Day Zero” water crisis.
In terms of technologies, mem-brane technologies continue to dominate the desalination market. Ninety percent of desalination capacity contracted since 2010 employs membrane technologies, with the use of thermal technologies for large-scale projects remaining concentrated in the Middle East.
Industrial desalination grows 21 percent
The industrial desalination market grew by 21 percent in contracted capacity between 2016-2017, according to the IDA Water Security Handbook. Increased activity in upstream and downstream oil and gas accounted for more than one third of contracted industrial capacity in 2017 while rising commodity prices have revived desalination activity in the mining industry, with 201,000 m3/d of new capacity contracted in the first half of 2018 alone. Rapid growth in the microelectronics industry is also creating opportunities for desalination technologies, with contracted capacity in this sector more than doubling from 2016-2017.
IDA Director and Managing Director of Aquatech Devesh Sharma sums up the principal reasons for the recent 21-percent rise in the industrial desalination market: “The intersection of water scarcity and corporate water risk is driving growth in the use of desalination and other forms of advanced water technology in industry. Concerns about operational risks, corporate social responsibility,
sustainability, and water’s direct impact on P&L [profit and loss] have made this a boardroom issue for a majority of large companies.”
The most significant driver of expenditure on advanced water technology is water scarcity, he explains. “Most industrial development occurs either in highly water scarce regions or densely populated regions where there is an emerging and extreme competition for fresh water resources. Water scarcity has driven more stringent environ-mental regulation demanding lower volumes of discharge as well as higher purity of wastewater, thus driving the need for water reuse, particularly in industry.
“All of this, coupled with industry’s demand for higher purity, is creating an interesting and emerging market need for better advanced water technology. Water is a widely used raw material in industry, and the way in which it is treated can have a significant impact on process efficiency. In certain cases, it takes more water to mine the same element than it did in the past, and end-users are also finding opportunities where higher purity of water in the process results in better production yields. This is also being seen in the oil and gas industry with the advent of smart water processes that adjust the water quality to the geology in the well to minimize issues such as biological fouling or precipitation, all with the objective to maximize yield.
“Removing dissolved salts from water and other technologies, which turns low-quality wastewater and raw water sources into high-quality process water, will be an important driver of industrial efficiency moving forward.”
Global water reuse market strengthens
The importance of water reuse as a solution to the world’s growing water issues has escalated significantly in the past few years. Increasingly, many regions are looking to wastewater reuse over large-scale desalination as a solution to drought-induced water scarcity. For example, both Cape Town and California are pursuing potable water reuse of wastewater, and reuse of wastewater in industry plays a vital part of policy responses to degradation of water resources in China and India.
As contracted capacity continues to rise, the epicentre of the global wastewater reuse market has shifted from North America to Asia, with China accounting for 49 percent of capacity contracted between 2010 and 2017. However, new capacity in India and Taiwan is also significant. India is now the fastest growing market in the region, with new environmental legislation as one of the drivers.
The Americas is the second largest region according to installed capacity, with the majority of water reuse focused on the agricultural and industrial sectors in the US, which remains the world’s second largest market by contracted capacity at 10 percent of the total. However, the awarding of three projects in Latin America accounts for the majority of the region’s increase in contracted capacity.
Water reuse is gaining traction in the Middle East as well although desalination remains the primary unconventional water source for arid countries in the region. Large-scale upgrades of sewage treatment plants in the Gulf and Egypt have driven strong growth in reuse.
Spain has led the European wastewater reuse market since 2010, with large projects aimed at agricultural users in that country. However, a proposed EU directive that would require treatment of microbiological pathogens to facilitate water reuse for agricultural irrigation has the potential to increase water reuse in the EU from 3 million m3/d to 18 million m3/d.
Industrial water demand is a key driver of the wastewater reuse market. This trend is especially apparent in water-intensive manufacturing and extraction industries as well as in regions where population growth has created a conflict between industrial and municipal water users, driving the industry to seek alternative water sources, as municipal users are typically prioritized, especially in times of drought.
The 2019 IDA World Congress will be held on October 20-24 in Dubai, UAE. For more information, visit www.wc.idadesal.org
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An intergovernmental report on climate change released late last week highlights the need for a whole-of-landscape approach to tackling climate change, and the vital role the agriculture and forestry sector can play in reducing emissions and storing carbon, according to Climate Proofing Australia (CPA). Source: Timberbiz
The CPA is pleased to see that the Intergovernmental Panel on Climate Change’s recommendations are consistent with its call on the Australian Government to better target the Climate Solutions Fund (formerly the Emissions Reduction Fund) to incentivise carbon projects from the agriculture and forestry sectors that deliver the co-benefits of biodiversity, productivity, water quality and landholders and employment.
“The Fund’s current conditions limit the land sector’s capacity to generate co-benefits associated with carbon sequestration, such as reinstating wildlife habitat, supporting sustainable agriculture, increasing the plantation forestry estate, and cleaner waters in our rivers,” Australian Forest Products Association CEO Ross Hampton said.
“This next phase of the Fund is an opportunity to address these barriers and make it more accessible to primary industries and landowners.”
Mr Hampton said the IPCC Special Report backs Australia’s forest industries to help fight climate change.
“This latest IPCC report is further evidence that Australia’s forest management practices of sustainable harvest and regeneration are as good as anywhere in the world when it comes to emissions reduction and carbon mitigation benefits. It is better for the environment to have well managed multiple-use forests that continue to produce renewable forest products that store carbon and bioproducts that substitute for fossil fuels-based alternatives, than to lock forests up,” Mr Hampton said.
Greening Australia CEO Mr Brendan Foran said that with land-based activities also accounting for around 20 per cent of the country’s greenhouse gas emissions, carbon farming presents a really important opportunity not just to reduce these emissions, but to improve the landscape at the same time.
“A strengthened CFI and the introduction of ‘premium credits’ will mean that large-scale tree plantings can also achieve important co-benefits, such as reinstating wildlife habitat, supporting sustainable agriculture and cleaner waters in our rivers.”
CPA reiterated its call on the Federal Government to commit a proportion of the Climate Solutions Fund to projects that deliver multiple benefits, and to remove barriers to the Fund that currently limit opportunities for the agriculture and forestry sectors.
The latest IPCC report states:
Sustainable forest management aimed at providing timber, fibre, biomass, non-timber resources and other ecosystem functions and services, can lower GHG emissions and can contribute to adaptation. B5.3.
Sustainable forest management can maintain or enhance forest carbon stocks, and can maintain forest carbon sinks, including by transferring carbon to wood products, thus addressing the issue of sink saturation…Where wood carbon is transferred to harvested wood products, these can store carbon over the long-term and can substitute for emissions-intensive materials reducing emissions in other sectors. B5.4.
Most mitigation pathways include substantial deployment of bioenergy technologies. B7.4.
The use of residues and organic waste as bioenergy feedstock can mitigate land use change pressures associated with bioenergy deployment. B3.3.
Photo: Australian Forest Products Association CEO Ross Hampton
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Phil Green, Plantation Improvement Manager, said the 7.4 million pine seedlings will be sent out to restock timber plantations near Tumut, Bombala, Bathurst and Walcha.
“Over the last 20 years, Forestry Corporation’s Blowering nursery has seen over 140 million seedlings pass through our gates to help build people’s homes and workplaces,” Mr Green said.
“We have 16 staff on board to help with the grading and dispatch program which runs for five months.
“At the height of the dispatch program, it is not uncommon to send upwards of 800,000 seedlings out of the nursery gate in a week.
Mr Green said preparations for the massive seedling dispatch began in October last year, when the team at the nursery planted more than 340 kilograms of seed into individual cells.
“These seedlings are going to become future generations’ homes and furniture, so we go to great lengths to ensure we produce high quality, robust seedlings that will produce strong and straight timber when they are ready for harvest in 30 years,” Mr Green said.
“We use different seeds for seedlings destined to be planted in different parts of the estate so that the seedlings have the best chance of thriving in their environment and growing into high-quality timber.
“Over the past eight months, we have carefully fertilised, watered and nurtured our seedlings, regularly measuring the stem diameter, height and nutrient status of seedlings in sample plots throughout the nursery and we are now assessing each individual seedling to ensure it meets our high standards.
“Forestry Corporation replants the equivalent of almost 300 times the area of Sydney’s CBD to pine plantations each year and around 85 per cent of the seedlings replanted state-wide are grown here at Blowering, so it’s a role we take very seriously,” Mr Green concludes.
For more information about Forestry Corporation of NSW, visit www.forestrycorporation.com.au
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Gough family to sell Caterpillar dealership after nearly a century – The wealthy Gough family has sold Gough Group for $211 million to a Malaysian company after a 90-year history in New Zealand owning the Caterpillar heavy machinery dealership.
The Gough family fortune is collectively valued at nearly $400m but members have been split in recent years and been embroiled in a High Court battle for control over the family trusts that controlled the company.
Family members include property developers and investors Antony and Tracy who are brothers, and their nephew and son respectively, Jamie, who is a Christchurch City councillor.
Gough Group employs about 950 people across its network in more than 50 locations in Australia and New Zealand. Over the past year Gough Group grew its revenue by more than 18 per cent $540m from higher sales sales for its Caterpillar and transport and materials handling businesses.
The buyer is Sime Darby Berhad, one of the largest Caterpillar dealers globally. It purchased Continental Car Services in 1999. In New Zealand, Sime Darby Motors operates under the Continental Cars and City Nissan dealerships in Auckland representing brands such as BMW, Porsche, Volkswagen, Audi, Ferrari and Nissan. It also has a commercial transport arm representing brands such as Volvo, Hino, Mack and UD Trucks.
The conditional agreement depends on Overseas Investment Office approval but is expected to be completed by the end of September, Sime Darby said.
With an international workforce of more than 20,000 employees, they are headquartered in Malaysia with operations in 18 countries and territories across the Asia Pacific region. Sime Darby Berhad is listed on the main market of Bursa Malaysia Securities Berhad.
Rayonier Inc. reported 2Q 2019 net income of $18.8 million, or $0.14 per share, on revenues of $184.8 million. This compares to net income of $36.3 million, or $0.28 per share, on revenues of $245.9 million in the prior year quarter.
2Q operating income was $31.4 million versus $51.6 million in the prior year period. 2Q Adjusted EBITDA was $60.6 million versus $111.3 million in the prior year period.
Rayonier is a leading timberland real estate investment trust with assets located in some of the most productive softwood timber growing regions in the United States and New Zealand.
Log Max has signed an agreement with it’s current Brazilian dealer Timber Forest to become the exclusive Log Max distributor for all of Brazil. – Timber Forest has grown to become one of Log Max best-selling distributers worldwide. They share the Log Max ground values of excellent customer support and product knowledge, says Greg Porter at Log Max. Our common goals make this a great choice for Log Max distribution.
Timber Forest is the forest division of Rodoparaná and has been a Log Max distributer for more than 9 years. With an excellent staff focused on forestry and dedicated to hard work Timber Forest and the Rodoparaná group has over the years grown and expanded the forestry markets in Southern Brazil. Their knowledge of forestry products is important to their customers and Log Max. We believe they will have continued success being the exclusive Log Max distributor for all of Brazil.
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“It’s a great opportunity and honor to be able to contribute to Timber’s continued growth. My role will be to serve as support for the sales team, to maintain and increase customer relationships, which Timber already does a very good job, through communication and strategics programs we will develop together”, said Macedo.
“We are growing a lot in recent years, and we realize it was time to establish a model of communication to strengthen our relationship with our clients and the market, that is the reason to hire Rafael, who has experience in the field and can also contribute with new marketing actions. We all are very excited about the novelty and ready to work”, says Claumar Baldissera, Sales and Marketing manager. In addition to the forestry machines of the Finnish brand Ponsse and the construction and mining equipment of the Chinese company Sany, Timber also represents in the south of Brazil the implements of Satco, manufacturer from New Zealand.
Timber was responsible for the beginning of the popularization of forest mechanization in Brazil, more than 15 years ago. Based in the three southern states (Paraná, Santa Catarina and Rio Grande do Sul), the company, which represents world-renowned brands, also customizes forestry machines, provides its own fleet monitoring called Timber Fleet, and provides maintenance service. “We work tirelessly to deliver solutions to our customers, when they have a problem, it becomes ours too”, says Jober Fonseca, Director of Timber.
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